The Peasants’ Dilemma: Finance and Fraud Problems in Purchasing Fertilizer in Taiwan (1910–1930s)

Abstract

This chapter examines the transaction mechanisms that increased the demand for fertilizers among Taiwanese peasants under Japanese colonial rule. The following three points are discussed. First, there were two supply routes for the purchase of fertilizers: one was from the agricultural associations, the other from merchants. In applying fertilizers, the peasants came to use two applications: a basal fertilizer applied just before planting, and an additional fertilizer applied one or 2 months after planting. The agricultural associations only managed joint purchasing for the basal fertilizer, so the peasants had to purchase additional fertilizer on the market. Second, in purchasing fertilizers, peasants confronted two problems: financial difficulties and fraud. The institutional measures, such as the establishment of banks or laws, were not alone effective in countering these problems. Finally, the peasants chose “reliable” suppliers, thus increasing the demand for fertilizers. The agricultural association was a reliable supplier because it provided financial facilities and did engage in fraud. Some rice merchants, “Tulongjian”, were also reliable suppliers for the peasants because they had no incentives to trade in adulterated fertilizers. Also, these merchants were willing to supply fertilizers on a credit base

This chapter is a translation of an article that originally appeared in Shakai Keizai Shigaku 76(3) (Nov 2010) pp. 443–461